Analyst: Cashless Conversion Would Favor Everi

Roth Capital Partners says the casino interest in cashless technology amid the Covid-19 pandemic will benefit Everi Holdings more than other suppliers.

Analyst: Cashless Conversion Would Favor Everi

Analysts at Roth Capital Partners LLC have initiated coverage of supplier Everi Holdings, noting that its fintech division will give the company the edge as casinos turn to cashless technology amid the Covid-19 pandemic.

Roth analyst David Bain wrote in a 40-page investor report that Everi has a “leading fintech casino-market share,” that is “worth multiples its current share price,” and this tied up with a “Covid-19-accelerated regulatory/consumer push” toward a “truly cashless casino environment,” wrote analyst David Bain in a 40-page report on Friday.

Bain added, “Peers lack fintech, have less earnings visibility (heavier weighted toward one-time sales) and most have less upside” in earnings terms.

On June 2, Everi reported it had swung to a first-quarter net loss of US$13.5 million, compared to recording net income of US$5.9 million in the prior-year first quarter. Michael Rumbolz, the group’s chief executive, said in commentary with the quarterly numbers that the group’s overall business had been going well during the first two months of 2020 prior to the public health emergency.

The American Gaming Association said in a recent policy paper on casino payments modernization that its recent research indicated nearly six out of 10 casino visitors had expressed interest in using digital or contactless payment in their everyday lives due to the Covid-19 pandemic.